For the Hardees financial statements, what years are covered by the consolidated balance sheets included in the audited financial statements of CKE Restaurants Holdings, Inc.?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
okers.** Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
| The undersigned parties do hereby acknowledge receipt of this Addendum. | |
|---|---|
| Dated this day of 20 | |
| Signature of Franchisor Representative | Signature of Franchisee Representative |
| Title of Franchisor Representative | Title of Franchisee Representative |
ITEM 21
FINANCIAL STATEMENTS
Attached to this disclosure document as Exhibit K are the audited combined consolidated financial statements of the CKE Securitization Entities (Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC and Hardee's Funding LLC), which comprise (1) the combined consolidated balance sheets as of January 27, 2025 and January 29, 2024, and the related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, and the related notes to the combined consolidated financial statements;
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the audited consolidated financial statements of CKE Restaurants Holdings, Inc., which is Hardees' indirect corporate parent, include consolidated balance sheets as of January 27, 2025, January 29, 2024, and January 30, 2023. These balance sheets are accompanied by related consolidated statements of operations, comprehensive income, equity, and cash flows for the fiscal years then ended, along with notes to the consolidated financial statements.
Prospective Hardees franchisees should note that these financial statements provide a view into the financial health of Hardees' parent company, CKE Restaurants Holdings, Inc. Understanding the parent company's financial performance can be crucial, as it can impact the level of support and resources available to the Hardees franchise system. For instance, a financially stable parent company is more likely to invest in marketing, technology, and supply chain improvements that benefit franchisees.
It's also important to recognize that the fiscal years presented end on different dates in January (January 27, January 29, and January 30). The FDD states that CKE Restaurants operates on a retail accounting calendar, ending on the last Monday in January, and for clarity of presentation, they generally label all years presented as if the fiscal year ended January 31. This is a common practice in the retail and restaurant industries to account for consistent weekly sales cycles.
In addition to the CKE Restaurants Holdings, Inc. financial statements, the FDD also includes combined consolidated financial statements for the CKE Securitization Entities, which include Hardee's Restaurants LLC. These statements provide further insight into the financial performance of the specific entities directly involved in the Hardees franchise system. Reviewing both sets of financial statements will give a prospective franchisee a more comprehensive understanding of the financial structure supporting the Hardees brand.